Eisai and Merck enter a Lenvima collaboration that could be worth billions

Japan’s Eisai (TYO: 4523) and US pharma giant Merck & Co (NYSE: MRK) have agreed on a strategic collaboration for the worldwide co-development and co-commercialization of Lenvima (lenvatinib mesylate), an orally available tyrosine kinase inhibitor discovered by Eisai.

The Japanese firm’s shares rose nearly10% to 6,126 yen on news of the accord, which could be worth up to $5.76 billion to Eisai, but most of that would be contingent on eventual sales. Merck stock was little changed by mid-morning

Lenvima was first launched in the USA in March 2015 as a treatment for locally recurrent or metastatic, progressive, radioactive iodine-refractory differentiated thyroid cancer in the USA. Lenvatinib is marketed as Kisplyx in the European Union.